Sunday, December 16, 2012

Expensive Oil Since 911 Has Coincided With Slow GDP Growth

Reagan-Bush-Clinton era low energy costs coincided with economic "good times" when real GDP increased 83% over twenty years.

By contrast the last twelve years have witnessed real GDP growth of barely 24% in the face of soaring energy prices.

The country's most urgent need is for lower energy prices, not tax increases. Revenues take care of themselves when the economy is growing well.

Crude Oil Is Priced About Where It Was 5 Years Ago


5yr Gold, NY Spot, Up Over 100% 12/07 to 12/12

From $800 to $1,700 the ounce in five years.

The late 2008 collapse was just a head fake.

5yr GLD Is Up Over 100% 12/2007 to 12/2012


Vanguard Precious Metals and Mining Down 50% 12/07 to 12/12


Your Real Five Year S&P500 Rate Of Return Since October 2007 Is Negative

I've got your real annual rate of return right here. Actually this guy does, but I love showing it. You are down 1.19% every year for the last five years in the S&P500 Index, October 2007 to October 2012.

Buy and hold. Buy and hold. Buy and hold. Buy and hold. Buy and hold. ...

Bye.

"Babes Shall Rule Over Them. And The People Shall Be Oppressed."


"And I will give children [to be] their princes, and babes shall rule over them.


"And the people shall be oppressed, every one by another, and every one by his neighbour: the child shall behave himself proudly against the ancient, and the base against the honourable."

-- Isaiah 3:4f.


"Ben Bernanke and other central bankers, like promiscuous parents, compensate and indulge political leaders acting irresponsibly in their stewardship of national economies.


"Sooner or later spoiled children turn out badly, and economies juiced with too much money have their bubbles, inflation and collapse.

"This will all end badly."

-- Peter Morici, Smith School of Business, University of Maryland, here



Saturday, December 15, 2012

Crazed Bomber Killed 38 School Children In This Building In 1927

In Bath, Michigan, northeast of Lansing.

Story here.

Human evil is not a recent invention.

Workin' Farmer Style

See it here.

Friday, December 14, 2012

Bank Failure Number 51 In 2012

Bank failure number 51 in 2012 is Community Bank of the Ozarks, Sunrise Beach, Missouri, costing the FDIC $10.4 million.

When asked to show me the money, they didn't have it.

Rare Sighting Of The Equally Rare "Green Whale"


Thursday, December 13, 2012

Time Magazine's Unperson Of The Year


Libertarian Louis Woodhill Panders Left And Right

Louis Woodhill, here, who wants to go over the cliff to save the country:


"The electorate, as a whole, understands economics. ... (collectively) the voters know everything . . .."

Which is why they voted for divided government. Democrats were right! Republicans were right!

Uh huh.

Internet Pioneer Comes Out For Gridlock

Marc Andreessen, here:


"The presumption is that we want the government to do things. I'm pro-gridlock," Andreessen said. "It doesn't bother me in the least if government is all ground to a halt." ...


"'Rise above' I completely disagree with it," Andreessen said, speaking of the motto coined by CNBC to resolve Washington's budget woes. "I think it's well-intentioned, but I think it's undesirable and I think it's dangerous."



Wednesday, December 12, 2012

Growth Of Single Person Households To Blame For Income Inequality

The lesson? Get married and stay married. The tax code is your friend.

As reported here:


Without a corresponding increase in the measured income inequality for U.S. individuals, the increase in the measured income inequality for U.S. households has been almost entirely driven by the increase in the number of single person households over time.

So income inequality among U.S. households isn't increasing because the rich are getting richer. That means that policies intended to right this situation by going after the rich in the name of "fairness" are guaranteed to fail, because the real cause of the increase in income inequality among U.S. households over time is something that cannot be fixed by such actions.

If only the people pushing such policies could see that....

Boosting Minimum Wage 40% Reduces Youth Employment 25%

You talkin' to me?
Way to go, Brownie!

Story here:


In November 2007, teens represented 4.0% of the entire U.S. workforce. In November 2012, teens account for just 3.1% of the reduced U.S. workforce. At this point, jobs that were most likely to have been held by teens are 14 times more likely to have been negatively affected by the employment situation over the past five years than their numbers among the entire U.S. workforce would suggest.

In retrospect, it seems that the U.S. Congress' action to boost the minimum wage by nearly 41% in three stages from 2007 through 2009 without doing anything to boost the revenues of teen employers by an appropriate percentage to compensate them for their higher costs of doing business during this period of time wasn't such a hot idea.

Now Color Michigan Blue Like Indiana

Forced unionism states are in yellow.

Tuesday, December 11, 2012

Rules For Radical Republicans: Bush Tax Cuts Edition

Rule 1: Power is not only what you have, but what the enemy thinks you have.

The enemy knows the Congress is a coequal branch of the government. The problem is the Republicans and the Speaker of the House do not. You actually have more power even than that. You have 30 Republican governors. Start using them.

Rule 2: Never go outside the experience of your people.

"New revenues from the rich" is the enemy's idea, not Republicans'.

Rule 3: Whenever possible, go outside the experience of the enemy.

Bush is ancient history. Time to make your own and repudiate the past. Pass something in the House which goes farther than Bush ever dreamed, and send it to the Senate to enrage the enemy.

Rule 4: Make the enemy live up to its own book of rules.

The enemy is funding gold-plated union jobs and pensions for federal and state workers at the expense of middle class Americans in the private sector who enjoy neither. It's time you reminded the middle class about that.

Rule 5: Ridicule is man's most potent weapon.

Use surrogates saying: Moochelle. Crony capitalist. Ideologue. Bolshevik. Dictator. Muslim sympathizer. Race baiter. Panetta flies cross country too much at taxpayer expense. The vice president thinks FDR talked to a television camera.

Rule 6: A good tactic is one your people enjoy.

Republicans can campaign, too. Go frequently to friendly territory and bring 2016 hopefuls with you.

Rule 7: A tactic that drags on for too long becomes a drag.

The idea of compromise became a drag a long time ago. Stop waiting for it. Go on the offensive instead.

Rule 8: Use different tactics and actions and use all events of the period.

The enemy is trying to combine everything into one event, "the fiscal cliff", which tells you they perceive they are at a disadvantage. They are. You need to keep the events separate and do things piecemeal. Raising the debt ceiling should come later, crossing the tax rates fiscal cliff should come first. Fight for spending cuts later with the debt ceiling, not now. Sequestration already gave you some spending cuts, which you should embrace.

Rule 9: The threat is more terrifying than the thing itself.

The greatest fear of the Democrats is a debt ceiling fueled government shutdown over spending cuts, but it wasn't the end of the world under Bill Clinton, and it won't be the end of the world if it happens in 2013. You actually won that in 2011. Do it again, except bigger, to satisfy the ratings agencies. Besides, it's red meat for the base.

Rule 10: Maintain a constant pressure upon the opposition.

No more appearances with the enemy, especially on the golf course. You are third in line for the presidency. Start acting like it. Visit Afghanistan to encourage the troops.

Rule 11: If you push a negative hard and deep enough, it will break through into its counterside.

The place you need to get to is the same place you were at two times when the president extended the Bush tax rates, so you should know the way. An uncompromising new insistence on tax reform and much lower tax rates might get you there. It changes the subject and focuses the argument on relieving the taxpayers. The president upped the ante. You need to see him and raise him. Aim for the moon, and you might get into orbit.

Rule 12: The price of a successful attack is a constructive alternative.

You might not get the radical tax reform, about which you must be deadly serious, but settling for making the Bush tax cuts permanent is a constructive alternative.

Rule 13: Pick the target, freeze it, personalize it, polarize it.

Focus your attention on answering the partisanship of individuals in the pundit class. Don't fire Tea Party men. Enlist them in attacking the enemy. They are good at it, and they will repay you with support later.

The Ignorant Statement Of The Day Comes From Jeff Immelt, Chairman Of GE

The ignorant statement of the day comes from Jeff Immelt, chairman of GE, here:

"The one thing that actually works, state run communism a bit– may not be your cup of tea, but their [Chinese] government works."

Communism is nothing if not "state-run", as in, run by the Communist Party. As it stands, the statement is meaningless.

Actually China's Communist Party practices a form of state capitalism, just like we do, which in the good old days was called fascism. And it only works until it doesn't, at the price of human repression, which goes unreported in the west. You know, like how many abortions were performed this week in Peoria or Shanghai. Still, I don't see a lot of people flocking to China. I see Chinese who have gotten rich trying to get out.

And whereas we build things that actually get used, using fiat currency, China builds things using fiat currency which don't get used, including massive numbers of buildings and highways. Of course, the grandmothers of Bolshevism in our country do the same thing as the Chinese. They build massive numbers of churches which are for the most part vacant all week.

You say socialism, I say national socialism, but let's call the whole thing off.


If You're Unemployed, Just Remember . . .

. . . you're expendable, just like an abortion.